Toby Potter

Market headwinds in first half of 2022 met by positive inflows resulting in overall growth in Funds under Management in Managed Account services.

IMAP (The Institute of Managed Account Professionals Ltd) in conjunction with Milliman has released the latest data for balance date 30 June 2022 in its 6 monthly Managed Accounts FUM Census long term series. In the 6 months to 30 June 2022 balance date, Funds Under Management (FUM) in Managed Accounts increased by $3.4 bn to reach a new high of $135.8 bn, up 22% compared to June 2021.

Toby Potter, Chair of IMAP said, “The investment in client education by financial advisers and investment providers is clearly resulting in a greater focus on clients investing to achieve their longer term goals, and using the structured process that managed accounts provide.”

“There has been little sign of clients withdrawing funds when market fluctuations occur. Plus the efficiencies of managed accounts means that advisers have more time to focus on communicating with clients.” said Potter.

“The continued growth of 22% year on year compares with the decline of 0.5% in total superannuation, despite mandated inflows”^[1]

Victor Huang, Milliman’s Practice Leader, Australia advised that “A turbulent period in the investment markets delivered market sell-offs across both equities and fixed interest, with the value of the ASX / S&P 200 Accumulation Index falling -9.9% over the 6 month period (compared with a 3.8% increase in the prior 6 month period).

“Milliman is seeing an increased need for explicit risk management strategies to be used in this new regime of high inflation and low growth” said Huang The FUM results split between types of managed accounts is as follows:

“Participants from the managed account sector totaled 51 organisations. I thank all who participated for their efforts in responding at a time when there are many priorities and demands“, said Toby Potter. ”Some changes in categorisation by providers resulted in decrease in MDA and an increase in Other services ( which includes IDPS-like, trustee discretion and some wholesale managed accounts). Participants range from the large platforms, and MDA service providers through to individual licensees. ^[2]

IMAP wishes to expressly thank all census contributors – a number of whom are listed below (by permission):

• Accordius
• AMP Implemented Portfolios
• BT Panorama
• Cameron Harrison Private
• Clime Asset Management
• DASH
• DNR Capital
• EC Pohl & Co
• Elston Netwealth
• FiiG Securities
• Fortnum Private Wealth
• HUB 24
• Insignia (IOOF)
• Lifespan Financial Planning
• Macquarie
• Mainstream Group
• Mason Stevens
• MLC Asset Management
• Praemium

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[1] https://www.apra.gov.au/news-and-publications/apra-releases-superannuation-statistics-for-june-2022
[2] Organisations which act as investment managers (for example on SMA platforms) are included through the SMA issuer.

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